In a significant shift within Mumbai’s retail landscape, Spanish fashion giant Zara closed the doors of its largest India store in South Mumbai, making way for Purple Style Labs (PSL Retail). The luxury fashion house has secured a five-year lease for 59,350 square feet, in the 119-year-old Ismail Building, located near Mumbai’s famed Flora Fountain.

As per lease registration documents obtained from Propstack, PSL Retail will pay a monthly rent of ₹3 crores during the first year, with the rent set to escalate to ₹3.8 crore by the fifth year. PSL has committed a security deposit of ₹18 crores and paid a stamp duty of ₹53.9 lakh. The firm will occupy five floors of the Ismail building, starting from the ground level, with plans to house its luxury fashion brand, Pernia’s Pop-Up Shop, in the space.

Zara, the building's former tenant, officially shut its store on February 24. Despite a long-term lease agreement signed in 2016 for 51,300 square feet at a rental rate of ₹2.25 crore, the store struggled to meet sales expectations in the face of soaring rents, sources say.